JPMorgan Chase has filed lawsuits against several customers accused of exploiting a technical glitch in its ATMs that allowed them to withdraw cash before checks cleared. Known as the “infinite money glitch,” this issue went viral on TikTok in late August, with users celebrating the easy cash withdrawals.
On Monday, JPMorgan filed cases in federal courts, targeting individuals who allegedly withdrew large sums. One case in Houston involves a customer who owes the bank nearly $291,000 after an accomplice deposited a fake check for $335,000. According to the lawsuit, the accomplice deposited the check on August 29, and the defendant began withdrawing the funds immediately before the bank detected the fraud.
The glitch has prompted a broad investigation, with JPMorgan examining thousands of cases. Although paper checks have become less common, they still account for a significant portion of global fraud losses, totaling $26.6 billion last year, according to Nasdaq’s Global Financial Crime Report. The glitch underscored the risk of paper check fraud, which the bank has since closed.
Additional lawsuits were filed in Miami and California, with cases involving amounts between $80,000 and $141,000. Most cases under investigation involve smaller amounts, but JPMorgan is prioritizing those with higher balances or potential links to criminal organizations. The bank says it contacted those involved to seek repayment, though funds remain outstanding.
JPMorgan’s lawsuits seek repayment with interest, overdraft fees, legal costs, and in some cases, punitive damages. These civil suits are separate from criminal investigations that JPMorgan has referred to law enforcement.
“Fraud is a crime that impacts everyone and undermines trust in the banking system,” said JPMorgan spokesperson Drew Pusateri. “We’re pursuing these cases and actively cooperating with law enforcement to ensure accountability for those committing fraud against Chase and its customers.”
